Thinking about buying a home? Here are a few cold, hard facts to chew on

You want to be the king or queen of your own castle. But how do you conquer this daunting feat, given that in big cities, so-called starter castles can cost more than $1-million? To help you navigate one of the largest purchases you’ll ever make in your life, here are some answers to commonly asked questions for first-time home buyers.

How do I know if I’m money-ready to be a home owner?

Look at your lifestyle and ask yourself, “Am I ready to commit?” Do you have stable income and can you plant roots for a few years?

“With the transactional costs of real estate, you have to stay put for five years to make up your money,” says 31-year-old Sean Cooper, who paid off his $450,000 mortgage in three years and authored the upcoming book, Burn Your Mortgage.

Next, crunch some numbers to determine if you can afford the home you want. The Canada Mortgage and Housing Corporation says your monthly housing costs (mortgage payments, taxes, heating, condo fees, etc.) shouldn’t be more than 32 per cent of your gross monthly income. Use mortgage payment calculators. Ask other homeowners how much owning their homes cost. And don’t forget to add in the closing costs.

“A lot of people assume that renting costs the same amount monthly as owning a house but that’s not true,” Cooper says. “Home ownership costs come with a lot more expenses such as home insurance, repairs and maintenance. A good rule of thumb is to budget 1 to 3 per cent of the purchase price of per year to repair and maintenance.”

How the heck do I amass a down payment?

“Beg your mom and dad,” says James Laird, president of Broker of Record. “We’re seeing that family members are willing to help.”

Millennials were 47 per cent more likely than generation Xers to have received help from family for a down payment on their first home, according to a recent RateHub report.

For those who don’t have that option, it’s going to take sacrifice and hustling. See if your parents will allow you to move home temporarily — almost 40 per cent of Millennials have moved back home at some point, a TD survey says — or if you can downgrade your living expenses, for example, by finding a roommate. Do what you can to boost your income and your savings, whether that’s reducing spending or negotiating for a raise or working that side hustle.

Also, under the home buyers’ plan, first-time home buyers can take $25,000 out of their registered retirement savings plan and pay it back over the next 15 years without incurring any penalty. For a couple that means $50,000.

Should I wait and save up 20 per cent or just put down the minimum 5 per cent?

Buyers who put down less than 20 per cent must purchase mortgage default insurance; they also may also qualify to borrow less. So, if you’re in an affordable housing market, aim for 20 per cent. (For the average Canadian home, which costed $474,590 in December, that’s a $94,918 downpayment.)

“If you’re waiting for a 20 per cent downpayment in a big city and you don’t have parental help, you’re going to be waiting a long time,” says Kerri-Lynn McAllister of RateHub. You then run the risk of being priced out of the market if prices continue to rise. “If you’re looking at [waiting] years, then it may not make sense,” McAllister adds. “[The insurance] is not a cost that you often feel because it’s rolled into your mortgage.”

What are my borrowing options?

“Do your research and compare your rates online,” McAllister says. “Even doing that research ahead of time and bringing that number to your bank and asking if they can match it, is also very prudent. You don’t want to take the first offer.”

Shopping can be complicated so consider getting a mortgage broker — an intermediary who is connected to multiple lenders and who shops around for the best deal for you (they are paid a finders fee from the lender), she says.

Vancouver-based online lender Mogo recently unveiled a mortgage platform geared to Millennials; the digital dashboard walks users through the process and allows them to apply for a mortgage online. “The application takes four minutes,” says Chantel Chapman, a credit expert and financial fitness coach with Mogo. “It’s all about the experience with a mortgage specialist and the convenience of doing it online.”

When you’re shopping for a mortgage, don’t just look at rates. Look at the penalties if you end up breaking your mortgage and check out pre-payment privileges such as being able to make lump sum payments, increase your payments and double up on payments.

The house that I want is out of my reach. Now what?

“People have to manage their expectations,” McAllister says. “The dream of home ownership doesn’t have to be equated with a detached house because that can be a stretch in cities like Toronto or Vancouver. People should start looking at different types of homes to fulfill like that dream; town houses and family-friendly condos are good alternatives.” Consider other options such as buying outside of the core or buying with family or friends.

-Financial Post

Canada’s Banks Resist Plan For Them To Take On More Mortgage Risk

Canada’s banking industry association has criticized a federal Liberal proposal that would see them take on more of the risk involved in lending out mortgages.

The Canadian Bankers Association (CBA) said in a submission to the Department of Finance that the proposal would “undermine” access to mortgages for Canadians, by increasing mortgage rates, reducing competition and excluding some people from getting mortgages at all.

The proposal would see mortgage lenders pay a deductible on their insurance when a mortgage defaults. Currently, mortgage insurance covers the full cost of a defaulted mortgage.

That arrangement has some critics worried about “moral hazard”: Since someone else pays when things go wrong, the banks have little incentive to make sure that their insured mortgages have been lent out responsibly.

Many organizations, including the IMF, have suggested that the government phase out or privatize the Canada Mortgage and Housing Corp., the country’s government-run mortgage insurer, in order to reduce risk in the housing market.

But the CBA’s report argues, in essence, that if it ain’t broke, don’t fix it.

“Canada’s housing finance system has demonstrated considerable resilience and stability over time,” the report said, referring to the fact that Canada avoided the U.S.’s housing crash last decade.

“The historical success of Canada’s system creates a strong presumption in favour of existing arrangements.”

The report argues that forcing the banks to take on more of the risk of insured mortgages would make it riskier for lenders, which means they would demand higher mortgage rates.

Additionally, it would mean some regional and smaller lenders, who depend more on insured mortgages, would stop lending, reducing competition.

“The impact would be particularly acute for first-time homebuyers,” the report stated.

Though Canada’s banks have been lauded in recent years for being well-run and well-capitalized, many organizations have less positive things to say about Canadians’ household debt, which has been driven by rising mortgages and is now the highest in the G7, at 166 per cent of disposable income.

The Parliamentary Budget Office warned last year that Canadians risk a debt crisis by 2020 if interest rates were to rise.

The CBA argued in its report that lenders vigorously stress-test their mortgage portfolios to ensure borrowers can still afford their mortgages should mortgage rates go up.

-The Huffington Post Canada

Banks’ dirty little secret: You can hold your mortgage in your RRSP — but is it worth the trouble?

There are a lot of reasons why holding your mortgage in your RRSP is appealing. And there are a lot of people who could be candidates for the strategy. But I am going to let you in on a dirty little secret — the financial industry does not want you to know about holding your mortgage in your RRSP in the first place.

Many investors are still affected by the global financial crisis nearly ten years later. It was the collapse of the subprime mortgage market in the United States in 2007 that began the domino effect. It is hard to believe a decade has passed.

Since then, stock and real estate markets have had a profound emotional impact on investing for Gen Xers and Millennials. Canadians born after the baby boom that ended in 1964 were entering their 40s when the global financial crisis ensued. This is an age when many people are moving into larger, more expensive homes and simultaneously ramping up their retirement savings.

Younger generations of Canadians have therefore experienced a period when rising real estate is taking an ever larger share of their family budget, often at the expense of traditional investing. It has also been a period during which many people have felt that real estate has nowhere to go but up and is the best investment around.

This preference for real estate over stocks is further reinforced by the fear instilled by the 35 per cent drop in Canadian stocks experienced by the Toronto Stock Exchange in 2008. According to a recent poll by Mackenzie Investments, “younger Canadians are significantly more likely to have negative feelings around RRSP season, while those in the 55+ age group appear more positive.”

Younger Canadians certainly have not had the same hesitation regarding real estate and mortgages, continuing to push real estate prices to all-time highs and doing so on the back of more and more debt.

So holding your mortgage in your RRSP can be appealing to younger Canadians, as well as anyone looking for higher yielding investments in a low yield world.

If someone wants to hold their mortgage in their RRSP, the first step is to find an institution that will allow you to do so. Your RRSP with your investment adviser or your bank is likely not an option. You will need a self-directed RRSP from an institution like Olympia Trust, B2B Bank, Canadian Western Trust or a handful of other trust companies or banks.

You will have to undergo the same income verification requirements and approval processes as you would with a regular mortgage. So holding your mortgage in your RRSP is not a way to borrow more money than you would otherwise be able to borrow conventionally.

The applicable interest rate will be the posted rate — not the discounted rate that most of us are accustomed to paying. This means more interest on your mortgage payments, but that is offset by high interest income for your RRSP.

There are fees involved, including appraisal fees, administrative charges, self-directed RRSP fees, mortgage insurance and so on. Set-up fees could be a couple of thousand dollars and ongoing costs could be a couple of hundred dollars each year.

Once set up, you make regular payments to your RRSP the same way you would otherwise do to the bank. The mortgage payments accumulate in cash in your RRSP and can then be invested into other investments. The principal and interest calculations are the same as with any regular mortgage.

Of note is that payments are not considered RRSP contributions. And just like your regular mortgage, you cannot miss payments. It does not matter that you are both the lender and the borrower. The trustee that holds your mortgage is responsible for initiating foreclosure if you do not keep up.

Much of the advice I have come across about holding your mortgage in your RRSP suggests that you need to have a large RRSP or a small mortgage to consider the strategy. That is not true, as the Canada Revenue Agency (CRA) states that “there is no income tax requirement that such mortgages be a first mortgage or (even) a residential mortgage.”

On that basis, you can hold a portion of your overall mortgage debt on a property in your RRSP and another portion as a regular mortgage with a conventional lender. That said, the cost and time to set up a small mortgage in your RRSP may not be worth it.

It is also interesting to note that the CRA does not prevent you from holding a commercial property mortgage in your RRSP or even a rental property mortgage. These mortgages would be even more appealing mortgages to hold in your RRSP because if you are using these properties to earn rental income, the interest you are paying — to yourself in your RRSP — is tax deductible on your personal tax return. Furthermore, the interest rate on these mortgages may be higher than the interest rate on a residential 1st mortgage, meaning higher income for your RRSP and higher tax deductions for you personally.

So back to my comment about the financial industry not wanting you to know about holding your mortgage in your RRSP. Most industries — the financial industry perhaps more than any other — have biases. We live in a capitalist society and the financial industry benefits when you borrow your mortgage money from them and invest your RRSP money with them as well. It gives them two sources of profit, as opposed to you cutting them out and holding your mortgage in your RRSP.

But this is a great case of what sounds like a great way to stick it to the establishment that sounds good in theory, but probably is not good in practice.

Consider this: if you hold your mortgage in your RRSP, you might be borrowing at 5 per cent and investing at 5 per cent (the posted rate). But if you can instead get a regular mortgage, borrow at 2.5 per cent and ideally invest at 3 per cent, 5 per cent, or even 7 per cent, you are going to be much better off in the long run because you will make money on the spread.

On that basis, despite the appeal and despite the large number of Canadians who could hold their mortgage in their RRSP — I would think twice.

Despite the large number of Canadians who could hold their mortgage in their RRSP — I would think twice

Those most likely to benefit would be ultra-conservative investors who are unlikely to take on stock market risk. Someone with a tax-deductible mortgage on a rental property, especially if they are in a high tax bracket, is another potential candidate.

But I would generally shy away from the strategy and instead use the bank as your partner instead of your enemy. Take their cheap money as a mortgage and do your best to invest your RRSP in a diversified portfolio.

If you really want to hold a mortgage in your RRSP, I would rather see you own someone else’s mortgage and ideally as a diversified pool of mortgages like a Mortgage Investment Corporation (MIC). Better yet, consider a diversified mix of stocks and bonds at a reasonable fee that are suited to your personal risk tolerance.

-Calgary Herald

Investing in Alberta is better than buying stocks

Homes provide shelter and refuge, but they are also most Albertan homeowners’ single largest investment. Housing represents 47% of total assets for the average Alberta family – much higher than stock market investments and pension plans combined (29%). Why is this important? Because homeownership benefits the economy as a whole, as well as individual homeowners. Let’s look at this in the context of the most recent stats on Alberta’s real estate, reported by the Canadian Real Estate Association.

Investing in housing in Alberta is better than buying stocks

Over the last 18 years, house price appreciation in Alberta has outpaced Toronto stock market returns. Between 1999 and 2016, with average annual residential sales of roughly 57,000, house price growth in Alberta (6.6%) outpaced yearly returns on stocks traded on the Toronto Stock Exchange (6.4%).

Average residential prices up 3.1% in Alberta in January

Total residential sales across the province were up 17.7% year-over-year, totalling 2,679 resale transactions in January 2016. Roughly 3.4 out of every 10 newly listed homes were sold, translating into a sales-to-new listings ratio (SNLR) of 34%. And the average residential sales price rose 3.1%, to $383,040.

Increased home equity = increased net worth

What’s so great about house prices being up? Rising house prices mean homeowners are building equity in their homes. Home equity represents the current market value of the house, minus any remaining mortgage payments. Equity is built over time as the homeowner pays off their mortgage and fluctuates with the market value.

Rising home equity benefits homeowners individually, and the Alberta economy as a whole. By how much? More than $40 billion in 2016.

 

Calculating Returns to Equity

Using Statistics Canada’s data on Alberta homeowners’ mortgage balances (Surveys of Financial Security), we calculated equity shares by age group. Equity shares multiplied by user costs (average two-bedroom apartment rents used as proxy) provided the income generated (returns to equity) per homeowner, by age class. The annual income generated by homeownership was then derived by multiplying the number of homeowners by age group in Alberta with returns to equity per homeowner.

For those under 35, the income generated by homeownership reached $11,000 a year per homeowner


Over the past five years (2012-2016), the annual income generated by homeownership averaged roughly $57,000 per homeowner (all ages) in Alberta. Returns on equity per homeowner ranged from annual income generation of $11,000 for homeowners under the age of 35 (generally considered as first-time buyers), to roughly $14,000 for those above 65 (annual average).

REALTOR® Tip: First-time buyers build equity in their home as they pay off their mortgage – roughly $11k a year!

Collectively, annual returns on equity (ROE) for all homeowners in Alberta reached roughly 38 billion dollars, or 12% of GDP

Thirty-eight billion dollars a year represents roughly 12% of Alberta’s nominal GDP and 85% of Government of Alberta’s annual revenues. When people build equity in their homes, they borrow against that equity through a home equity loan, or home equity line of credit. An increase in the value of their homes increases the amount of collateral available to households, leading to higher credit. Rising house prices, which imply higher housing equity, may encourage consumers to borrow more, causing a rise in consumer spending. Looking at the data, we know this to be true.

The increase in consumer spending following a rise in in house prices has been referred to as the marginal propensity to consume (MPC) from housing wealth. We found that, for every $1 increase in average residential prices, Albertans raise their personal spending by 6.7 cents, which collectively amounts to roughly $5 billion a year (2012-2016 average).For every $1 rise in housing prices, Albertan homeowners raise their personal spending by 6.7 cents – collectively $5 billion a year

Five billion dollars a year is 1.5% of provincial GDP, and 11% of government revenues. This is a significant boost to Alberta’s economy. A 3.1% price gain, like the one we just saw in Alberta this January, equals an average increase of $11,420. The associated rise in consumer spending that could come out of that is $868 per homeowner per month, or $10,415 per homeowner per year, or a collective increase of $616 million a year. 

-Regine Durand.  Economist

How to buy a home when you haven’t sold yours yet

You’ve found the perfect new home for your family, but your current house hasn’t sold yet. You can’t afford to carry two mortgages, or maybe you were counting on money from your sale to help with the down payment and closing costs.

Before you let that dream home slip away, consider these strategies to help bridge the transition:

MAKE AN OFFER THAT’S CONTINGENT ON THE SALE OF YOUR HOUSE

A seller may be persuaded to accept your offer with the caveat that you’ll have to sell your house before closing on theirs. You’ll strengthen your chances of getting a seller to take a chance on you if you can show that your home is priced properly and has a solid marketing strategy, says real estate broker Dayolin Pratt with Re/Max Advantage Plus in Minnetonka, Minnesota. Successful contingency offers depend on good communication between the real estate agents representing both sides, Pratt adds. It’s up to you and your agent to reassure the seller that the closing won’t be delayed.

Obviously, in hotter housing markets with potentially multiple bids, it can be harder to get sellers to accept such an offer.

OFFER THE SELLER A RENT-BACK OPTION

One way to buy yourself extra time to complete your sale is to offer to buy the new house, then rent it back to the seller after closing, Pratt says. A rent-back agreement is typically for just a month or two. But this arrangement can give sellers extra time to move — or to find a new house of their own — while putting a little money in your pocket and keeping you from having to pay two mortgages at once.

TAP THE EQUITY IN YOUR CURRENT HOME

If you have a high credit score and considerable equity in your house, you could free up some of the latter with a home equity line of credit. A HELOC lets you use up to 85 per cent of your home’s value, less the balance remaining on your mortgage, and is fine-tuned based on your credit profile and income. Most HELOCs have a variable interest rate, so it’s in your best interest to pay off the loan as soon as your current home sells.

This strategy may let you buy a house before you sell, but it’s not a last-minute option. A HELOC requires an appraisal, income verification and a thorough credit check, so it takes time — generally 30 days or more — to qualify, says Tim Beyers, mortgage analyst with American Financing in Aurora, Colorado. If you’re thinking of going this route, make sure you run the numbers with an expert upfront, Beyers says.

To qualify for the new loan, a lender will evaluate your current mortgage payment, plus the HELOC payment and your new monthly mortgage payment, to calculate your debt-to-income ratio for the new mortgage approval, Beyers says. If your income is high enough to have a debt-to-income ratio below 40 per cent with all those payments and other monthly expenses taken into account, only then should you consider a HELOC, he adds.

“Once you start dipping into your home’s equity, that changes the equation when you apply for a new mortgage,” he explains. “Taking too much out can hurt your qualification chances on a new mortgage. Don’t make an offer, then try to scramble to do the math.”

ADD A HELOC TO YOUR NEW MORTGAGE

With this strategy, you break up the financing on your new home with a first mortgage for the amount you need, plus a HELOC to make up the difference in your shortfall for a down payment, says Elise D. Leve, senior mortgage banker at Citizens Bank in New York.

Once you sell your current home, you can pay the HELOC portion off in full and end up with the single mortgage you wanted in the first place, Leve says.

 

-NerdWallet: Deborah Kearns

Things to Consider When Buying an Old House.

It’s like a love affair; some older homes make your heart skip a beat. It is hard not to fall in love with an older home’s historic unique architecture, gabled roofs, hardwood floors, crown moldings and antique light fixtures—older homes definitely have their charm.

The plastered walls, leaded glass windows, original chandeliers, and oak paneling make an old home as attractive as it can possibly be. If you found your love you should be aware of the following money pitfalls of old houses. You do not want to discover that beneath the surface of your dream home lays a dilapidated wreck.

This article provides you with some valuable tips to help you identify potential problems and some renovation rules, should you decide that this love affair is going to be your Gold Mine.

Foundation
The foundation is the most important aspect of any home especially for older ones. One problem that is common for older homes is called the “sulphate attack”. This can occur as a result of a chemical reaction between the soil and the concrete, which causes the foundation to crack and crumble and that can be very problematic. Another major concern with older homes is that the centre beam of the home can begin to sink. This can result in a sagging roof, bowed walls, and sloping floors. If the old house has a bad foundation then renovating it can be very expensive where the cost can range from several thousand dollars to approximately $50,000 depending on the size of the home. Also, in some cases, one might need to jack up the house to replace the foundation and shore up the centre beam.

Electrical Wiring
When buying an older house, it is very important to find out if there are any problems with the state of the electrical and lighting system. Do the lights flicker? Is the current steady or do the lights fluctuate between bright and dull? Is there adequate lighting in the home? It’s important to have the wiring carefully inspected. Also, many older houses use aluminum wiring, which is cheaper than copper wiring but it is a serious fire hazard. Ensure that you factor the cost of rewiring into your offer price. Also, you should consider whether there are enough outlets in the home to suit the needs of a modern household. Install more outlets in order for you to run a number of devices at once like a television, computer, stove, etc.

Lead Paint
In older homes, lead paint is very common as lead was used as a white pigment in paint until the mid-1950s. If you are planning to repaint the home, call in a professional renovation firm as they know the safety precautions needed to be taken when repainting the house. Children and pregnant women should not be in the home during renovations.

Asbestos
Asbestos is a mineral that makes a very effective fire and heat-resistant material that was discovered to cause lung disease. When the tiny particles of this mineral are inhaled, over a period of years they begin to damage the tissue of the lungs. In old homes, asbestos was used in carpet underlay, textured paints, roofing felt, electrical wiring insulation, acoustic ceiling material and insulation. Getting the house checked for asbestos is critical.

Galvanized Pipe
Galvanized pipes are known to rust very quickly. Most insurance companies now refuse to cover water damage caused by leaks in a home with galvanized pipes.

Condition of the Older Home
Just like people, years will eventually take a toll on homes as well. An older home may begin to sag and slope, which is why it’s very important to know about the conditions of the house you’re planning on purchasing.

Older homes may be beautiful, but they aren’t designed for modern living without a total update or upgrade. Make sure the house structure can be modified easily to suit a current living style.

For older homes, renovations are a challenge. To determine the price you are willing to pay, add up the estimated costs to renovate the property based on a thorough assessment of the house. Then, subtract that from the home’s market value after renovation. Allow for an additional 5% for cost overruns and unforeseen problems plus inflation.

Preserve the Charm of Your Old House
If you have already fallen in love with this old house, then make sure you follow the golden rules in repairing your dream home and preserve its historic features and value.

  1. The golden rule of remodeling is, “do no harm”. As you update your older home, make sure to preserve its historic details. Reuse existing materials. Keep historic moldings and hardware. Wire gas lamps for electricity. Keep distinctive examples of craftsmanship. Restore marbling, stenciling, and carvings.
  2. Don’t try to undo long-ago renovations. Most buildings change over time, and alterations to your house may have historic significance in their own right.
  3. Whenever possible, repair rather than replace. Don’t throw away that old claw foot bathtub—have it re-glazed. Fix damaged doors, refinish old cabinets and patch cracking plaster.
  4. If historic features cannot be repaired, look for a similar item at an architectural salvage centre, or buy a new item that matches the old in design, colour, texture, and other visual qualities.
  5. And best of all make sure you hire a contractor that shares your passion and understands your love affair with your old house.

Good luck, you may have found your Gold Mine.

 

-News4realty.com

Choosing the correct window – Many wonder which is best but there is no easy answer

There’s no simple answer to how to choose the correct windows, but here are some things you should watch for.

Windows serve three purposes: They provide light, airflow and ventilation. But they should also help keep the heat out in the summer and in during the winter. That has to do with R-value — in other words, insulation — and the air-tightness around the window itself.

Every window leaks heat. You can have the best windows on the market — triple-paned, double low-E coatings — but they will not have the same insulation value as an insulated wood or concrete wall; no matter how thermally efficient they are.

The trend today is to increase the size of your windows, not to mention the number of windows in a home. People love natural light. But at the same time we need to make sure the windows are improving the house — not working against it.

Heat loss and gain through windows accounts for about half of our heating and cooling needs. A poorly installed and/or insulated window is like having a giant hole in your home’s exterior — and you will see the proof in your energy bills.

When it comes to window choice, there are several options, which can be overwhelming for some homeowners.

It used to be that all you could get were single-paned windows — those are windows that have just one sheet of glass. Now you can get windows that are double- or triple-paned, windows with argon or krypton gas, low-E coatings in between the panes — and different combinations of each, like low-E double-paned windows or low-E triple-paned windows with argon gas.

What’s the difference? For starters, a double-paned window has two layers of glass; triple-paned has three. Multiple layers of glass allow for insulation to go in between the panes, and that boosts the R-value.

The most common types of insulation are argon or krypton gas. Both help stop heat transfer. Krypton insulates better than argon but it’s also more expensive. If you have the budget, it’s a good investment. However, argon-gas-filled windows are still very good; if a home has these windows, I wouldn’t be disappointed.

If you’re not the original owner of your home, you might not know if your windows are gas filled. When you bought the house the previous owners would have probably told you, since they do make for better windows and cost more.

But if you want to make sure you can check the window tag. It’s usually on the bottom inside track of the window.

You can also try looking for two small holes on the spacer — one hole is where the gas would have been injected, and the other hole is for air to exit.

Another feature to look for is low-E glass, or low-emissivity glass. This is a microscopic metallic-oxide coating on the glass that lets in light but also helps stop heat — and ultraviolet rays — from transferring through the window.

Sometimes heat transfer is a good thing. In the winter, we want the sun to help heat our homes. But I’ve heard some homeowners complain about turning up their furnace more often after installing triple-paned windows. That’s because some windows do an excellent job at stopping heat transfer.

However, just like they help stop heat from escaping your home, they also don’t let the natural heat from the sun come in.

One option is to have triple-paned windows on the north side of the house only, and then double-paned on the rest. This provides the extra insulation needed to help block north winds, but still allows some heat to get in on all the other sides. It’s a tricky balance, which is why you should talk to a pro.

Once you’ve decided on the type of glass you want, you have to choose the framing. The most common are wood, metal — and vinyl, which tends to last longer and is easier to clean.

Metal can get scratched and dented. Wood is nice but requires a lot of maintenance; you will need to repaint your window framing at least every five years, and that’s if it’s done really well. The natural expansion and contraction of the wood frame can crack the paint. The basic rule of thumb is that if you can see the wood, the frame needs to be re-caulked and re-painted.

What type of window is the best? Most people want an easy answer. But like most things, there is no easy answer. It depends on the house and the application.

The key to making the right choice is finding a professional who will know what type of windows will work best for your home, and who will make sure they are properly installed.

 

Original source article: Choosing the correct window